Key facts
- The FTSE 100 index closed 1% lower at 10,399.70 points on Thursday.
- The Bank of England maintained its interest rate at 3.75%, with two out of nine members voting for a hike.
- The U.S. Federal Reserve held rates but signaled potential for a rate hike this year.
- Precious metal miners, technology shares, and homebuilders weighed on the FTSE 100.
- Informa gained 2.5% on stronger growth forecasts, and Intertek rose 1.6% on a takeover agreement.
London's FTSE 100 index closed 1% lower on Thursday, pressured by declines in miner and technology shares, as the Bank of England held interest rates steady at 3.75%. The decision was widely expected, with only two of the nine committee members voting for a rate hike amid persistent inflation concerns.
Globally, the U.S. Federal Reserve also held rates unchanged on Wednesday, though nine Fed policymakers forecast a rate hike this year, adding to market caution.
Precious metal miners were the hardest hit, with Fresnillo and Hochschild Mining falling 5.8% and 7.2%, respectively, as gold and silver prices eased. London Stock Exchange Group was the biggest individual faller, down 7% after Rothschild Redburn downgraded the stock to 'neutral'. Technology shares broadly lost 3.3%.
Interest rate-sensitive homebuilders declined 1.1%, with Persimmon falling 6.1%. Oil giants BP and Shell fell 1.6% each as oil prices touched their lowest since the start of the Iran war.
On the upside, the world's largest exhibition group Informa was the biggest gainer on the FTSE 100, rising 2.5% after forecasting stronger growth in 2027. Intertek gained 1.6% after the testing and certification firm agreed to a takeover by Swedish private equity firm EQT.